The value of independent electrical wholesalers

Supporting local independent electrical wholesalers has a bigger impact on your industry than you might imagine.

Here at Gemcell, supporting local business is at the heart of everything we do. And, with very good reason. Because strong local business means strong local communities – and with a quality network of independent electrical wholesalers, contractors from across the country can be confident in the knowledge they’ve got the support and products they need.

“Clearly, local businesses form the backbone of our communities, and it benefits everyone when they support each other,” says Jim Micholos, Senior Commercial Manager at P&R Electrical, and Gemcell board member.

“By shopping locally, businesses help to keep money within the community, which in turn supports local jobs, services, and infrastructure.”

Of course, there’s a feel-good factor that comes with shopping locally and supporting local businesses. But that warm, shiny glow only lasts so long – and fortunately there’s a whole lot more to supporting your community than just the feels.

Daryl Read, Managing Director of Popes Electrical and Data Supplies, and Gemcell board member, says, “When local businesses buy from each other the money stays in the region rather than flowing to overseas corporations. This creates a multiplier effect, where each dollar spent locally gets reinvested locally and supports wages, rents, cafes, shops, etc., which builds resilience in our local communities.

“Outside of the feel-good factor, it just makes good business sense to spend your money with a local business as stronger relationships with a local supplier can make it easier to arrange short-term credit, split deliveries, prioritised service, or customised orders without hefty surcharges or time delays.

“Other tangible benefits include a healthy business ecosystem. When local firms stay profitable, they maintain jobs, pay local taxes, and invest in infrastructure. That stable environment benefits every business operating in the area – better services, improved amenities, and a healthier local market.”

Buying electrical equipment locally

Jim says that local collaboration often also means the decision-makers are frequently involved – which can have a major impact on what’s possible.

“Having owners and decision makers present encourages confidence and trust to forge stronger, more transparent business and personal relationships,” he says.

“Generally, local collaboration also helps to build a strong network of suppliers, which can reduce dependence on national/multinational sources and create a more sustainable and resilient local economy.”

One of the many benefits of working with your local Gemcell wholesaler is the product quality available – with Gemcell’s preferred and approved suppliers helping ensure wholesalers have a raft of products you can confidently sell to your customers.

Daryl says, “An electrical contractor’s greatest asset is their reputation. A reputation is too valuable to risk installing cheaper, inferior products that may not be suitable for Australian conditions. Just because an item works well in Europe or Asia does not mean it will perform well in Australian conditions. This is why contractors should be looking for products that are designed by Australian businesses, for Australian conditions.”

Jim agrees, and believes independent wholesalers benefit from the relationships with suppliers – which contractors can take advantage of too.

“While our industry continues to be challenged in many ways, independent wholesalers in particular are less inclined to be importers so tend to rely more on the local supply chain and the support that comes from that relationship.

“In our case, we will only deal with reputable, trade-proven brands from industry-recognised suppliers who service and support the product from sales to installation. If a product were to fail, we can leverage our key supplier relationships to minimise the impact whilst we resolve any issues.”

A global reach for local wholesalers

While having that strong local presence is vitally important, the electrical world is truly global – so it’s essential to keep looking at what’s going on overseas, and be part of that global conversation.

As a member of IMELCO (International Marketing Electrical Corporation) Gemcell is consistently part of that global push – something Jim says is invaluable to the organisation, and independent electrical wholesaling in Australia.

“It brings a wealth of global knowledge and insight directly to our level. This allows us to tap into a broader network of expertise and best practices that we can then adapt and implement in our local markets.”

Daryl says, “From a Gemcell perspective, the IMELCO connection is a big deal as it links your local Australian wholesaler to the world’s largest network of independent electrical wholesalers. This is really important as it provides Gemcell members with market trends from Europe, North America, and Asia. That means we can see product innovations, such as EV infrastructure, smart building controls etc., before those trends reach Australia.”

Those Australian-based connections and innovations, however, have more impact than you might imagine. As well as supporting local organisations and businesses, the local knowledge helps drive innovation and local product development, too.

“It’s so important to support Australian-owned wholesalers and suppliers wherever possible, ” says Simon Gerard, Managing Director GSM Electrical, Trader.

“Local support helps local brands compete with global names and enables our industry to grow, employ, and reinvest.

“Locally-owned electrical wholesalers and supplier brands are quite often owned by family businesses, sometimes generational. Smaller contractors, in particular,  enjoy a strong relationship with these businesses, and we believe they represent the heart and soul of our industry. This is why we always promote ourselves as 100% Australian-owned and operated.”

Trader has managed to grow successfully since its inception in 2015 by developing strong relationships with both wholesalers and customers and listening to their needs. This feedback has led to many innovations and constant product evolution.

“A good example of this is our new Puma PUPP2GEF Easy Fit double power point,” says Simon.

“Two electrical contractors, based in the ACT, approached us with this ingenious idea to make a bracket-less power point. This product saves money by negating the need for a mounting clip. It also saves time as spring-loaded clamps are fitted to the back of the power point, much like a downlight. Since we launched it earlier this year, the response from contractors all over Australia has been enthusiastic with many praising the ‘outside the square’ solution.”

It just goes to show the impact that supporting local wholesalers – and using the very best suppliers – can have.

It’s far more than a transactional relationship – it’s a long-term, three-way relationship that supports each other, promotes each other, and plays a great, and far more wide-reaching role, than you’d probably think.

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